SAN FRANCISCO (Thomson Financial) - MBIA Inc. told Fitch Ratings Monday that
public information alone is not enough for the agency to maintain ratings on the
bond insurer in the future.
The company's statement came in response to an earlier Fitch announcement
that the agency has decided to maintain its insurer financial strength and debt
ratings on MBIA for the foreseeable future, despite the company's request
earlier this month for Fitch to withdraw them.
"Due to market developments, we believe that the non-public information
currently in Fitch's possession soon will become out of date, and public
information alone will be insufficient to maintain the ratings," said C. Edward
Chaplin, MBIA's chief financial officer, in a statement.
"The unique nature of the financial guaranty sector makes maintaining the
MBIA IFS and debt ratings more challenging without access to non-public
information," he said.
Chaplin added that MBIA respects Fitch's right to maintain MBIA's ratings
"for a period of time."
Shares of Armonk, N.Y.-based MBIA rose 10% to $14.04.
Gabriel Madway
gm/vj
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